Teneo AI (TENEO) Q1 2025 earnings summary

Executive summary

• Achieved 185% year-over-year growth in SaaS API call revenues and 101% growth in SaaS ARR for Q1 2025.

• Net Revenue Retention reached 142% in Q1 2025, indicating strong expansion within existing accounts.

• Gross margin maintained at 86% for the second consecutive quarter, reflecting SaaS model efficiency.

• Successful SEK 60 million directed share issue, enabling significant U.S. expansion and team buildout.

• Renewed major MSAs with large customers, including Medtronic, AT&T, Swisscom, and a global tech company.

Financial highlights

• SaaS API call revenues were 14.6 MSEK, up from 5.1 MSEK (+185% YoY); SaaS API call volumes reached 60.6 million (+154% YoY).

• SaaS ARR was 74.7 MSEK (+101% YoY); total ARR reached 101.1 MSEK (+51% YoY).

• Recurring revenues totaled 25.3 MSEK (+49% YoY); net sales were 25.3 MSEK (+47% YoY).

• Adjusted EBITDA improved to -1.4 MSEK from -8.4 MSEK YoY.

• Cash and bank position at quarter-end was 53.9 MSEK, adjusted for AR collections to 63.6 MSEK.

Outlook and guidance

• Targeting >200 MSEK in ARR during 2025, requiring several large customer wins from the current pipeline.

• Expecting a 'hockey stick' ARR growth pattern after summer, with revenue from recent deals likely in Q3.

• Ongoing investments in sales, marketing, and US expansion expected to increase operating expenses in Q2 2025.

• Board expects current cash position and recent share issue to adequately address group cash requirements.

• Focus on shortening sales cycles through pilots, POCs, and partnerships.